Ant Group to create a consumer finance platform
from China Group of ants reportedly intends to create a new consumer finance company that would allow the company to consolidate its base in the country’s online lending industry. Meanwhile, Ant – what a Chinese giant Alibaba Holding Group holds a 33 percent stake in – is preparing for a initial public offering and made a preliminary IPO filing with Chinese regulators.
Bloomberg News Ant said is working on the consumer credit project with Nanyang Commercial Bank, China TransInfo Technology Corp. and Contemporary Amperex Technology Co. The new consumer credit platform would be integrated into Chongqing, a Chinese megalopolis.
It is said to have registered capital of 8 billion yuan ($ 1.2 billion), Bloomberg reported. Under Chinese rules, consumer credit companies are allowed to lend 10 times their capital. This would be a big step forward for Ant, which owns microcredit companies in Chongqing that operate its Huabei and Jiebei platforms.
In addition, Ant already offers its Alipay payment app and money market funds and provides a credit rating.
Reuters reported that Ant’s decision to set up a consumer credit platform can be seen in the larger context of China’s deteriorating relationship with US group Ant and other Chinese tech giants – including Tencent and Bytedance – are looking to the domestic market as the United States examines them more and more.
Ant has already obtained a range of financial licenses in China covering payments, online banking, insurance and microcredit. Alibaba owns a third of Ant, Reuters reported.
Ant was started in 2014 by Alibaba founder Jack Ma, whose personal net worth exceeds $ 42 billion, making him the 17th richest person in the world, according to Forbes.
The huge growth of Ant Group has also caught the attention of regulators in China. The ant was forced to reduce the size of its money market fund, which by 2019 had swelled to over $ 168 billion with 588 million different investors.
Now Ant’s IPO could be one of the biggest in history.
“Becoming a public company will improve transparency vis-à-vis our stakeholders, including customers, business partners, employees, shareholders and regulators,” said Ant Group executive chairman. Eric jing said.